The order book of Finolex J-Power Systems Ltd (FJPS) is on the rise, according to the senior management of Finolex Group.
Addressing an investor conference, the transcript of which was filed on stock exchanges, the senior management of Finolex Cables Ltd said that the order book of FJPS was gradually rising and it currently stands at around Rs.280 crore.
Finolex J-Power Systems Ltd is a joint venture between Finolex Group (equity: 49 per cent) and J-Power Systems (equity: 51 per cent), incorporated in 2008. J-Power Systems, in turn, is a wholly-owned subsidiary of Japan-based Sumitomo Group.
FJPS manufactures extra-high voltage cables up to 500kV and its accessories. It also offers full turnkey installation of such cables.
According to the senior Finolex management, FJPS ended FY23 with a sales turnover of around Rs.125 crore and even made a small profit in Q4 of FY23. In fact, this was the first quarter where FJPS ever made profit, the management said.
The current order book of FJPS, of around Rs.280 crore, covers different voltage classes. While most of the orders are for the 130kV to 220kV class, there are also orders for EHV cables of 440kV. A small quantity of 66kV cable-related are also present, it is learnt.
Speaking of the opportunity space, the Finolex management felt that several transmission utilities are converting to 220kV underground cabling, both as a measure of safety and loss mitigation. Enquiries for 400kV-grade cables are also flowing in, it is learnt. Though there is competition in this space (of EHV cables), there is room for quality producers like FJPS, the management felt.
Regarding any proposed change in the equity partnership of FJPS, the Finolex Group management said that there was no plan of either partner seeking a change in its equity holding in the joint venture. J-Power Systems is the technology provider for EHV cables and is acknowledged as a world leader in this space, the Finolex management said.
(This story is based on the views expressed by the senior management of Finolex Cables during a recent investor conference discussing the company’s performance in Q4 of FY23. The transcript of this conference has been filed on stock exchanges.)
Featured photograph (source: Sumitomo Electric) is for representation only
